What Is ERP - Definition

What is ERP? It means enterprise resource planning, which itself means planning the resources in an enterprise (business). So, this abbreviation simply means, that this is a way of using the resources in a company more effectively. Notice, that this is not some kind of software, this is an ideology. Some companies build applications, that work according to this ideology, called ERP solutions. But there is something more there... the developers of such solutions build their application implementing some best business practices in it, and this is one of the most valuable features of ERP systems. The so called know-how is the most common thing that many of the small businesses out there lack. And this could be the difference between the successful, fast flowing company and the average company. At some point of the life cycle of an enterprise, the need of such a system becomes inevitable. The earlier managers understand this, the better. As the company grows, its control becomes more and more difficult task. An integrated solution, like ERP software, could be really helpful in this situation.

Who Needs ERP

Every small company, that wants to grow big just needs to use an ERP system. Some big corporations even would not do business with you, if you hadn't such a software implemented and working in your business. Such a solution is a proof for higher quality and that you are running your enterprise well and effectively. There are many many benefits coming from these systems, later we'll talk about them more. ERP solutions are from the group of integrated systems, which means that they are built to integrate any part of your business. Initially the manager in a small company can coordinate the different departments relatively easy, but when the company starts to grow, the same happens with the size and number of departments. The coordination between them becomes really hard and expensive. At some point of time a crisis of control is inevitable. ERP systems can be managers' best friend then, because this is one of their main purpose - to integrate your business.

Small Business ERP Implementation

Ok, now you have a basic idea about what ERP is. But there is one very important part of the EPR project - the implementation process. In order to use an ERP solution at its full extent, it have to be well functioning in the organization. This means that it has to be effectively implemented, so using the system, managers can benefit from its main purpose - resource planning and integration. The implementation process could, and im most of the cases is a slow and complicated process. It needs to be like this, to be effectively completed. A good ERP solution covers all (I mean all) of you business' activities. Do you think all of your activities could be covered and synchronized for a couple of days? It's would be possible if your business had been a street stall... Otherwise the time needed could be from several months to a couple of years. Don't be in a hurry, you'd better think about every little detail.

Some Fine ERP Resources

_Some Useful Resources about "what is ERP".

If you think that you are a complete newbie in this field, we suggest that you visit the site: http://whatiserp.eu/how-to-choose/. There you will find some nice basic stuff about ERP software and its implementation in small and middle size businesses. Also you can visit the page in on this topic on the biggest on-line encyclopedia here: http://en.wikipedia.org/wiki/Enterprise_resource_planning. There you can read some nice materials, I only wish they were better organized...